Assignments for Chapters 16-23

Assignments for Chapters 16-23 - CHAPTER 16 1. Weighted...

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CHAPTER 16 1. Weighted average shares outstanding. On January 1, 2010, Warren Corporation had 1,000,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 new shares to raise additional capital. On July 1, the corporation declared and issued a 2-for-1 stock split. On October 1, the corporation purchased on the market 600,000 of its own outstanding shares and retired them. Instructions Compute the weighted average number of shares to be used in computing earnings per share for 2010. 2. Basic and diluted EPS. Assume that the following data relative to Kane Company for 2010 is available: Net Income Transactions in Common Shares Jan. 1, 2010, Beginning number Mar. 1, 2010, Purchase of treasury shares June 1, 2010, Stock split 2-1 Nov. 1, 2010, Issuance of shares 8% Cumulative Convertible Preferred Stock Sold at par, convertible into 200,000 shares of common (adjusted for split). Stock Options Exercisable at the option price of $25 per share. Average market price in 2010, $30 (market price and option price adjusted for split). Instructions (a) Compute the basic earnings per share for 2010. (Round to (b) Compute the diluted earnings per share for 2010. (Round t Page 1
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CHAPTER 17 3. Investment in debt securities at premium. On April 1, 2010, West Co. purchased $160,000 of 6% bonds for $166,300 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2015. Instructions (a) (b) Page 2
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Trading equity securities. Korman Company has the following securities in its portfolio of trading equity securities on December 31, 2010: 5,000 shares of Thomas Corp., Common 10,000 shares of Gant, Common All of the securities had been purchased in 2010. In 2011, Korman completed the following securities transactions: March 1 Sold 5,000 shares of Thomas Corp., Common @ $3 April 1 Bought 600 shares of Werth Stores, Common @ $45 The Korman Company portfolio of trading equity securities appeared as follows on December 31, 2011: 10,000 shares of Gant, Common 600 shares of Werth Stores, Common Instructions Prepare the general journal entries for Korman Company for: (a) the 2010 adjusting entry. (b)
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This note was uploaded on 03/31/2011 for the course ACCT 2302 taught by Professor Knowing during the Spring '11 term at San Jacinto.

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Assignments for Chapters 16-23 - CHAPTER 16 1. Weighted...

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